The global smartwatch market is predicted to grow at a compound annual growth rate (CAGR) of about 12 percent by 2020. This is a very competitive market, and is mainly dominated by big international companies such as Samsung and Apple. To maintain significant market power in the industry, vendors like Fitbit, Sony, Pebble, ASUSeK Computer and PolarElectro, are now creating strategic partnerships with other industry players with the aim of attracting new customers. Although the market is still in its growth phase, it is still expected that numerous new players will join in, mainly because of its high growth potential.
During the forecast period, increased availability of smartwatches with advanced features and functionalities is also anticipated to attract the attention of fitness and technology enthusiasts.
The primary driver of market growth is expected to be the smartwatches’ high compatibility with numerous mobile devices. These devices include laptops, smartphones, TVs, PoS devices, headsets, media players, and other devices with NFC and Bluetooth capabilities.
Drawing on market research, analysts have predicted that the global smartwatch market will be dominated by Americans during the forecast period. Currently, the region accounts for over 68 percent of total market share, and is envisioned to maintain the market dominance throughout the forecast period. This is facilitated by several factors, such as rapid technology advancement and changing consumer preferences for electronic devices usage.
Many global smartwatch vendors have also turned to crowdfunding to raise money for their ventures, since it has proven itself to have generally benefitted the market in many ways:by augmenting consumer awareness; by creating opportunities for small vendors to easily access capital, start their businesses then develop them in an extremely competitive market; by allowing vendors to communicate directly with prospective customers, get them involved in the product development stage, and ultimately create ideal products for the steadfast market.